8828 Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6) also 

requires the self-regulatory organization to give the 

Commission notice of its intent to file the proposed 

rule change, along with a brief description and text 

of the proposed rule change, at least five business 

days prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. NYSE Arca has satisfied the five-day 

pre-filing requirement. 

12For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

open outcry, the mechanism has not 

been used frequently enough to supply 

sufficient evidence to evaluate the 

effectiveness of the Pilot Program. In 

order to allow for additional time to 

compile sufficient evidence as to the 

effectiveness of the Pilot Program, NYSE 

Arca proposes to extend the Pilot 

Program for an additional one-year 

period ending February 15, 2008. At the 

end of the extended Pilot Program, the 

Exchange believes it will be able supply 

the Commission with a report 

summarizing the effectiveness of the 

program. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

furthers the objectives of Section 

6(b)(5),9 in particular, in that it is 

designed to facilitate transactions in 

securities, to promote just and equitable 

principles of trade, and to protect 

investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b–

4(f)(6) thereunder.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

NYSE Arca has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal raises no new 

regulatory issues and will merely allow 

the Exchange more time to assess the 

effectiveness of the Pilot Program. 

Accordingly, the Commission 

designates the proposal to be effective 

and operative upon filing with the 

Commission.12

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2007–16 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2007–16. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of NYSE Arca. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2007–16 and 

should be submitted on or before March 

20, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3286 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55320; File No. SR–

NYSEArca–2007–15] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change To Trade 

Shares of the CurrencySharesSM

Japanese Yen Trust Pursuant to 

Unlisted Trading Privileges 

February 21, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

12, 2007, NYSE Arca, Inc. (the 

‘‘Exchange’’), through its wholly-owned 

subsidiary, NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

This Order provides notice of the 

proposed rule change and approves the 

proposed rule change on an accelerated 

basis. 


cprice-sewell on PROD1PC62 with NOTICES
Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8829 

3Currency Trust Shares are securities issued by 

a trust that represent investors’ discrete, 

identifiable, and undivided beneficial ownership 

interest in the non-U.S. currency deposited into the 

trust. See Securities Exchange Act Release No. 

53253 (February 8, 2006), 71 FR 8029 (February 15, 

2006) (SR–PCX–2005–123) (granting the Exchange 

accelerated approval of its proposed listing and 

trading standards for Currency Trust Shares and 

approving the UTP trading of shares of the Euro 

Currency Trust). 

4See Securities Exchange Act Release No. 55268 

(February 9, 2007), 72 FR 7793 (February 20, 2007) 

(SR–NYSE–2007–03) (‘‘NYSE Order’’). 

5See supra note 3. See also Securities Exchange 

Act Release No. 54043 (June 26, 2006), 71 FR 37967, 

(July 3, 2006) (SR–NYSEArca–2006–26) (granting 

accelerated approval for the Exchange to trade 

shares of six of the CurrencyShares Trusts pursuant 

to UTP); Securities Exchange Act Release No. 54020 

(June 20, 2006), 71 FR 36579 (June 27, 2006) (SR–

NYSE–2006–35) (granting approval for the original 

listing and trading of six of the CurrencyShares 

Trusts on NYSE). 

6The IIV is analogous to the intraday optimized 

portfolio value (sometimes referred to as the IOPV) 

and the indicative portfolio value associated with 

the trading of exchange-traded funds. 

7The Basket Amount is the amount required to 

be deposited for the purchase of a Basket of Shares. 

A Basket of Shares consists of a block of 50,000 

Shares. 

8Pursuant to NYSE Arca Equities Rule 7.34(a), 

the NYSE Arca Marketplace trading hours for 

exchange-traded funds are as follows: (1) 4 a.m. to 

9:30 a.m. Eastern Time (‘‘ET’’) (opening trading 

session); (2) 9:30 a.m. to 4:15 p.m. ET (core trading 

session); and (3) 4:15 p.m. to 8 p.m. ET (late trading 

session). The Exchange states that the currency spot 

price is available on the Trust’s Web site without 

interruption 24 hours a day, seven days a week. 

9E-mail from Timothy J. Malinowski, Director, 

NYSE Group, Inc., to Edward Cho, Special Counsel, 

Division of Market Regulation, Commission, dated 

February 20, 2007 (clarifying when the Exchange 

will halt trading of the Shares). 

10The Exchange represents that the provisions of 

NYSE Arca Equities Rule 7.34(a), which address, in 

part, interruptions in the calculation or wide 

dissemination of the value of an underlying index, 

shall also apply to interruptions in the calculation 

or wide dissemination of the value (spot price) of 

an underlying currency. For purposes of trading the 

Shares pursuant to UTP, the applicable value would 

be the Japanese Yen spot price. 

11See, e.g., NYSE Arca Equities Rule 7.12 

(Trading Halts Due to Extraordinary Market 

Volatility). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange, through NYSE Arca 

Equities, proposes to trade shares (the 

‘‘Shares’’) of the CurrencyShares SM

Japanese Yen Trust (the ‘‘Trust’’) 

pursuant to unlisted trading privileges 

(‘‘UTP’’). The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item III below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Pursuant to NYSE Arca Equities Rule 

8.202, which permits the listing and 

trading of ‘‘Currency Trust Shares,’’ 3

the Exchange proposes to trade pursuant 

to UTP the Shares of the Trust. The 

Commission has recently approved the 

listing and trading of the Shares on the 

New York Stock Exchange LLC 

(‘‘NYSE’’).4 The Exchange currently 

trades Shares of the Euro Currency 

Trust, CurrencyShares SM Australian 

Dollar Trust, CurrencyShares SM British 

Pound Sterling Trust, 

CurrencyShares SM Canadian Dollar 

Trust, CurrencyShares SM Mexican Peso 

Trust, CurrencyShares SM Swedish 

Krona Trust, and CurrencyShares SM

Swiss Franc Trust (the ‘‘CurrencyShares 

Trusts’’).5

The Shares issued by the Trust 

represent units of fractional, undivided, 

and beneficial interests in, and 

ownership of, the Trust. The Exchange 

states that the investment objective of 

the Trust is for the Shares to reflect the 

price of the Japanese Yen. A detailed 

discussion of the Trust, its assets and 

expenses, the creation and redemption 

of the Shares, the valuation of the 

Japanese Yen, the calculation 

methodology of the IIV (as defined 

herein), and distributions, among 

others, can be found in the NYSE Order. 

The Trust’s Web site (http:// 

www.currencyshares.com) provides 

information on: (1) The spot price for 

the Japanese Yen, including the bid and 

offer and the midpoint between the bid 

and offer for the Japanese Yen spot 

price; (2) an intraday indicative value 

(‘‘IIV’’) per Share, updated at least every 

15 seconds;6 (3) a delayed indicative 

value (subject to a 20-minute delay), 

used for calculating premium/discount 

information; (4) premium/discount 

information, calculated on a 20-minute 

delayed basis; (5) the net asset value 

(‘‘NAV’’) of the Trust, calculated each 

business day; (6) accrued interest per 

Share; (7) the daily Federal Reserve 

Bank of New York Noon Buying Rate; 

(8) the Basket Amount;7 and (9) the last 

sale price of the Shares as traded in the 

U.S. market, subject to a 20-minute 

delay. The Trust’s Web site 

disseminates the foreign currency spot 

price for the Japanese Yen and the IIV 

per Share at least every 15 seconds 

during NYSE Arca Marketplace’s 

opening and late trading sessions, as 

well as during its core trading session.8

The Exchange states that currently, 

the Consolidated Tape Plan does not 

provide for dissemination of the spot 

price of a foreign currency over the 

Consolidated Tape System (‘‘CTS’’). 

However, the last sale price for the 

Shares is disseminated through the CTS, 

as is the case for all equity securities 

traded on the Exchange (including 

exchange-traded funds). Currency price 

and market information on the Japanese 

Yen and other foreign currencies is 

available on a 24-hour basis through 

public Web sites, major market data 

vendors, and professional and 

subscription services. Foreign currency 

futures and options prices, including 

information on current and past trading 

sessions, are also available on a realtime and delayed basis from various 

financial information sources. In 

addition, the Exchange states that 

current foreign currency spot prices are 

also generally available with bid/ask 

spreads from foreign currency dealers. 

The Exchange represents that it will 

cease trading the Shares if the original 

listing market stops trading the Shares 

due a regulatory halt or such listing 

market delists the Shares.9 UTP trading 

in the Shares would be governed by the 

trading halt provisions of NYSE Arca 

Equities Rule 7.34 relating to temporary 

interruptions in the calculation or wide 

dissemination of the IIV or the value 

(spot price) of the underlying 

currency.10 Additionally, the Exchange 

may cease trading the Shares if such 

other event shall occur or condition 

exists, which, in the opinion of the 

Exchange, makes further dealings on the 

Exchange inadvisable.11

The Exchange states that the Shares 

would trade as equity securities, and 

therefore, the Exchange’s rules 

governing the trading of equity 

securities would govern the trading of 

such Shares. The Shares would trade on 

the NYSE Arca Marketplace from 4 a.m. 

ET until 8 p.m. ET. The Exchange 

represents that its equity trading rules 

would govern transactions in the Shares 

during all trading sessions. The Shares 

would be deemed ‘‘Eligible Listed 

Securities,’’ as defined in NYSE Arca 

Equities Rule 7.55, for purposes of the 

Intermarket Trading System Plan, and 

therefore would be subject to the tradeVerDate Aug<31>2005 15:22 Feb 26, 2007 Jkt 211001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1

cprice-sewell on PROD1PC62 with NOTICES
8830 Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 

12An ETP Holder is a registered broker or dealer 

that has been issued an Equity Trading Permit (ETP) 

by NYSE Arca Equities. 

13The Exchange further states that the Sponsor 

(Rydex Specialized Products LLC), the Trustee (The 

Bank of New York), the Depository (JPMorgan 

Chase Bank, N.A., London Branch), and the 

Distributor (Rydex Distributors, Inc.) are not 

affiliated with the Exchange or one another, with 

the exception that the Sponsor and Distributor are 

affiliated. 

14 15 U.S.C. 78f(b). 

15 15 U.S.C. 78f(b)(5). 16 17 CFR 240.12f–5. 

17 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

18 15 U.S.C. 78f(b)(5). 

19See supra note 4. 

20 15 U.S.C. 78l(f). 

21Section 12(a) of the Act, 15 U.S.C. 78l(a), 

generally prohibits a broker-dealer from trading a 

security on a national securities exchange unless 

the security is registered on that exchange pursuant 

to Section 12 of the Act. Section 12(f) of the Act 

excludes from this restriction trading in any 

security to which an exchange ‘‘extends UTP.’’

When an exchange extends UTP to a security, it 

allows its members to trade the security as if it were 

listed and registered on the exchange even though 

it is not so listed and registered. 

through restrictions of NYSE Arca 

Equities Rule 7.56. 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products to 

monitor trading in the Shares. The 

Exchange represents that these 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules. The 

Exchange is able to obtain information 

regarding trading in the Shares and 

options and futures on the Japanese Yen 

through proprietary or customer trades 

which ETP Holders 12 effect on any 

relevant market. In addition, the 

Exchange may obtain trading 

information via the Intermarket 

Surveillance Group from other 

exchanges who are members or affiliates 

thereof. The Exchange states that its 

general policy prohibits the distribution 

of material, non-public information by 

its employees.13

Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Bulletin will discuss 

the following: (1) The procedures for 

purchases and redemptions of Shares; 

(2) NYSE Arca Equities Rule 9.2(a), 

which imposes a duty of due diligence 

on its ETP Holders to learn the essential 

facts relating to every customer prior to 

trading the Shares; (3) how information 

regarding the IIV and the Japanese Yen 

is disseminated; (4) the requirement that 

ETP Holders deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (5) 

other relevant information. 

2. Statutory Basis 

The proposal is consistent with 

Section 6(b) of the Act 14 in general and 

Section 6(b)(5) of the Act 15 in particular 

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to, and perfect the 

mechanism of a free and open market, 

and in general to protect investors and 

the public interest. In addition, the 

proposal is consistent with Rule 12f–5 

under the Act 16 because the Exchange 

deems the Shares to be equity securities, 

thus rendering trading in the Shares 

subject to the Exchange’s existing rules 

governing the trading of equity 

securities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2007–15 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2007–15. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal offices of the Exchange. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2007–15 and 

should be submitted on or before March 

20, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.17 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,18 which requires that 

an exchange have rules designed, among 

other things, to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission 

believes that this proposal should 

benefit investors by increasing 

competition among markets that trade 

the Shares. The Commission notes that 

it previously approved the original 

listing and trading of the Shares on 

NYSE.19

In addition, the Commission finds 

that the proposal is consistent with 

Section 12(f) of the Act,20 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.21 The Commission 

notes that it previously approved for 


cprice-sewell on PROD1PC62 with NOTICES
Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8831 

22See supra note 5. 

23 17 CFR 240.12f–5. 

24 15 U.S.C. 78k–1(a)(1)(C)(iii). 

25 15 U.S.C. 78s(b)(2). 

26 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55173 

(January 25, 2007), 72 FR 4552. 

4Phlx Rule 803(k)(3) currently requires, among 

other things, that each of the underlying securities 

linked to a BLN either: (i) Have a minimum market 

capitalization of $3 billion and during the 12 

months preceding listing are shown to have traded 

at least 2.5 million shares; (ii) have a minimum 

market capitalization of $1.5 billion and during the 

12 months preceding listing are shown to have 

traded at least 10 million shares; or (iii) have a 

minimum market capitalization of $500 million and 

during the 12 months preceding listing are shown 

to have traded at least 15 million shares. 

5See Securities Exchange Act Release No. 43690 

(December 7, 2000), 65 FR 78523 (December 15, 

2000) (SR–Phlx–2000–90). 

trading pursuant to UTP on the 

Exchange the shares issued by the 

CurrencyShares Trusts, which are 

similar to the Shares issued by the 

Trust.22 The Commission finds that the 

proposal is consistent with Rule 12f-5 

under the Act,23 which provides that an 

exchange shall not extend UTP to a 

security unless the exchange has in 

effect a rule or rules providing for 

transactions in the class or type of 

security to which the exchange extends 

UTP. The Exchange has represented that 

it meets this requirement because it 

deems the Shares to be equity securities, 

thus rendering trading in the Shares 

subject to the Exchange’s existing rules 

governing the trading of equity 

securities. 

The Commission further believes that 

the proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Act,24 which sets 

forth Congress’ finding that it is in the 

public interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transactions in securities. The last sale 

price of the Shares is available through 

CTS. Although the CTS does not 

provide for dissemination of the spot 

price of the Japanese Yen, the Trust’s 

Web site disseminates the spot price 

every five to ten seconds, as well as the 

IIV per Share at least every 15 seconds, 

the NAV once daily, the Basket Amount, 

and the last sale price of the Shares. In 

addition, currency prices and market 

information on the Japanese Yen, 

including futures and options prices, are 

available through various major market 

data vendors, financial information 

sources, and professional and 

subscription services. If the listing 

market halts trading in the Shares, or 

the IIV or the value of the underlying 

currency is not being calculated or 

disseminated, the Exchange would halt 

trading in the Shares. 

The Commission notes that, if the 

Shares should be delisted by the listing 

exchange, the Exchange would no 

longer have authority to trade the Shares 

pursuant to this Order. 

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) The Exchange’s surveillance 

procedures are adequate to address any 

concerns associated with the trading of 

the Shares on a UTP basis. 

(2) The Exchange would inform its 

members in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares, 

including suitability recommendation 

requirements. 

(3) The Exchange would require its 

members to deliver a prospectus or 

product description to investors 

purchasing Shares prior to or 

concurrently with a transaction in such 

Shares and will note this prospectus 

delivery requirement in the Information 

Bulletin. 

This approval order is conditioned on 

the Exchange’s adherence to these 

representations. 

The Commission finds good cause for 

approving this proposal before the 

thirtieth day after the publication of 

notice thereof in the Federal Register. 

As noted above, the Commission 

previously approved the original listing 

and trading of the Shares on NYSE and 

the trading of shares issued by the 

CurrencyShares Trusts, which are 

similar to the Shares issued by the 

Trust, pursuant to UTP on the 

Exchange. The Commission presently is 

not aware of any regulatory issue that 

should cause it to revisit those findings 

or would preclude the trading of the 

Shares on the Exchange pursuant to 

UTP. Accelerating approval of this 

proposal should benefit investors by 

creating, without undue delay, 

additional competition in the market for 

such Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,25 that the 

proposed rule change (SR–NYSEArca–

2007–15) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.26

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3291 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55321; File No. SR–Phlx–

2006–85] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Order Granting Accelerated Approval 

of Proposed Rule Change Relating To 

Listing Standards for Basket Linked 

Notes 

February 21, 2007. 

I. Introduction 

On December 12, 2006, the 

Philadelphia Stock Exchange, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposal to amend Phlx 

Rule 803—Criteria for Listing—Tier 1, to 

increase the number of underlying 

securities that may be linked to a Basket 

Linked Note (‘‘BLN’’). The proposed 

rule change was published for comment 

in the Federal Register on January 31, 

2007 for a 15-day comment period.3 The 

Commission received no comments 

regarding the proposal. This order 

approves the proposed rule change on 

an accelerated basis. 

II. Description of the Proposal 

A BLN is non-convertible debt of an 

issuer whose value is based, at least in 

part, on the performance of highly 

capitalized, actively traded common 

stock, or non-convertible preferred stock 

of other issuers.4 Rule 803(k) currently 

permits the Exchange to list and trade 

BLNs linked to more than one equity 

security but no more than 20.5 Phlx 

proposes to amend Rule 803(k) to 

increase the number of underlying 

securities that may be linked to a BLN 

from no more than 20 to no more than 

30. 


cprice-sewell on PROD1PC62 with NOTICES